A while ago I did a post about what I thought of the bailout.
I've changed my mind a little bit. Well, I haven't really changed my mind, but at some point you have to quit fighting the herd head on and just assume some things are going to happen no matter how hard you push.
We, the people, are bailing out huge companies to save the jobs of thousands. Unfortunately, the top execs of these companies still get to live a life that most people in the world can't even imagine. They take their 10 billion dollar loan and give themselves a 10 million dollar bonus for getting the loan. Or perhaps take their 10 million dollar bonus after saving the company money by laying off 20,000 employees.
I've decided that if we, the people, have to bail out these companies, then we, the people, should get stock in the companies we bail out.
If there are 200,000,000 taxpaying Americans and we gave the banking industry $700,000,000,000, then we should all be getting $3500 in these company's stocks. Merrill Lynch is around $10 per share. That's quite a few stocks. If the company turns around like they are supposed to with this great bail out plan then we can all cash in on it.
Now they are talking about bailing out the auto industry. General Motors is asking for about $20,000,000,000. That's only about $100 per taxpayer, but their stock is trading at about $4 per share right now. That means I should be getting 25 shares of GM stock if they get my "loan". If they really, "turn things around" like they are promising, then I should be able to sell those shares at some point. Earlier this year their stock was selling for around $30 per share. So, when they "recover" I can sell my stocks for $3250! It would almost pay for the banker bailout!
Of course, I'm simplifying. If they had to give up that much stock for the loan then their stock price would tumble. But, it doesn't sound to me like any of these companies are taking much risk.